Apple iPhone rumors growing, does FoxConn have a contract to make 12 million?

Several months ago iPhone speculation began to ramp up pretty hard, with journalists and Apple rumor sites jumping hard on any hint, patent, or whiff of the device that everyone really, really seems to hope Apple will be making. Particularly after the disappointing rollout of Apple Computer, Inc. (NASDAQ: AAPL) and Motorola's cellphone/iTunes collaboration.

Apple rumor site Think Secret picked up on a story from the The Commercial Times that indicated Hon Hai (Foxconn) would be making 12 million cellphone devices for Apple, and the source seems meaty enough that regular news outlets are following along. The devices are set to ship out during the first half of 2007, which could be why Apple executives were so excited about what 2007 would bring during their last earnings report. Investors should use caution on using just this information for investing purposes, as Hon Hai has declined to comment, and Apple sure isn't confirming it!

What kind of impact could this device have? Analyst Andy Neff over at Bear Stearns thinks it would jack Apple earnings up some 22%, even accounting for iPhone sales cannibalizing iPod sales.

The question is, would the iPhone pull the iPod line well ahead of the Zune? And is it a device people want?

Apple stock was up $1.30 to $85.35 when this story was written, a 1.55% increase in price.

Tobias Buckell is a freelance writer, author, and professional blogger who owns stock in Apple Computer.